What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-02-26 compared with 2023-03-01 · 91 added, 74 removed, 289 unchanged (36% of the section changed)

Our mission is to connect everyone in construction on a global platform.

We are a leading provider of cloud-based construction management software, and are helping transform one of the oldest, largest, and least digitized industries in the world.

We are the leading global provider of cloud-based construction management software, and are helping transform one of the oldest, largest, and least digitized industries in the world.

We focus exclusively on connecting and empowering the construction industry’s key stakeholders, such as owners, general contractors, specialty contractors, architects, and engineers, to collaborate and access our capabilities from any location on any internet-connected device.

Our platform is modernizing and digitizing construction management by enabling real-time access to critical project information, simplifying complex workflows, and facilitating seamless communication among key stakeholders, all of which we believe positions us to serve as the system of record for the construction industry.

We are also developing other programs and services, such as our materials financing program, to address related challenges faced by the construction industry’s key stakeholders.

Adoption of our products and services helps our customers increase productivity and efficiency, reduce rework and costly delays, improve safety and compliance, and enhance financial transparency and accountability.

We are also continuing to develop other programs and services to address related challenges faced by the construction industry’s key stakeholders.

Adoption of our products, services, and platform helps our customers increase productivity and efficiency, reduce rework and costly delays, improve safety and compliance, and enhance financial transparency and accountability.

In short, we build the software for the people that build the world.

3 unchanged sentences

Each of our products can be accessed from the office or the jobsite on computers, smartphones, and tablets, enabling users to work wherever the job requires.

Our open application programming interfaces (“APIs”) and our application marketplace (“App Marketplace”) allow customers to integrate our products with their internal systems and over 400 integrations including accounting, document management, and scheduling software, providing our users with choice and flexibility, and demonstrably increasing the stickiness of our platform as we aim to become the construction industry’s system of record.

Our open application programming interfaces (“APIs”) and our application marketplace (“App Marketplace”) allow customers to integrate our products with their internal systems.

We offer over 500 integrations, including accounting, document management, and scheduling software, which provide our users with choice and flexibility, and demonstrably increase the stickiness of our platform as we aim to become the construction industry’s system of record.

Our customers range from small businesses managing a few million dollars of annual construction volume to global enterprises managing billions of dollars of annual construction volume.

Our core customers are owners, general contractors, and specialty contractors operating across the commercial, residential, industrial, and infrastructure segments of the construction industry.

Our customers rely on our platform to help run their businesses more efficiently and safely, with enhanced collaboration and accountability among key stakeholders.

We generate substantially all of our revenue from subscriptions to access our products.

We primarily sell our products on a subscription basis for a fixed fee with pricing generally based on the number and mix of products a customer subscribes to and the fixed aggregate dollar volume of construction work contracted to run on our platform annually, which we refer to as annual construction volume.

To help our customers address the variable nature of their construction volume, we offer (a) annual subscription contracts with construction volume over a one-year period;

(b) multi-year subscription contracts with construction volume measured over successive one-year periods;

and (c) pooled volume contracts with fixed flat annual fees based on construction volume measured over multiple years (typically, two- or three-year periods).

As our customers subscribe to additional products or increase the annual construction volume contracted to run on our platform, we generate more revenue.

We do not provide refunds for unused construction volume, or charge customers based on consumption or on a per project basis.

Our customers rely on our platform to help run their businesses more efficiently.

Our business model is designed to encourage rapid, widespread adoption of our products by allowing for unlimited users, meaning we do not charge a per-seat or per-user fee.

Customers can invite all project participants to engage with our platform as part of a project team.

Customers typically invite participants to join our platform, including their employees and collaborators, which are other project participants that engage with our platform but do not pay us for such use.

Customers typically invite participants to join our platform, including their employees and collaborators, who are other project participants that engage with our platform but do not pay us for such use.

Collaborators have access to relevant project information and product features for the duration of their involvement in a project and are incentivized to become customers, as collaborators do not control what information they get access to, may not be able to access project information after a job is complete, and cannot run their complete portfolio of projects on our platform.

Once collaborators have used our platform, they may potentially become customers and evangelize Procore on future projects.

We believe that our business model creates a flywheel effect that has helped increase our customer count, from 10,166 as of December 31, 2020, to 12,193 as of December 31, 2021, to 14,488 as of December 31, 2022, reflecting a year-over-year growth rate of 20% and 19% in 2021 and 2022, respectively.

The increase of 2,295 net new customers in 2022 includes 189 customers from LaborChart, Inc.

(“LaborChart”) when it was fully integrated into the sales process in the third quarter of 2022.

We have also seen an increase in the number of customers that contributed more than $100,000 of annual recurring revenue (“ARR”), which grew from 843 as of December 31, 2020, to 1,111 as of December 31, 2021, to 1,576 as of December 31, 2022, reflecting year-over-year growth rates of 32% in 2021 and 42% in 2022.

All customer counts aforementioned exclude customers acquired from Levelset and Esticom, Inc.

(“Esticom”), which have not yet been renewed onto standard Procore

annual contracts.

Remaining Levelset and Esticom legacy customers will be included in our customer and ARR metrics once they are renewed onto standard Procore annual contracts or upon integration of Levelset and Esticom into Procore’s sales process.

We are highly focused on continuing to acquire new customers and expand existing customers’ use of our platform to support our long-term growth.

We intend to efficiently drive new customer acquisitions by continuing to invest across our sales and marketing engine to engage our prospective customers, increase brand awareness, and drive adoption of our products, services, and platform.

As of December 31, 2023, 2022, and 2021, the number of customers on our platform was 16,367, 14,488, and 12,193, respectively, reflecting year-over-year growth rates of 13% in 2023 and 19% in 2022.

We intend to expand existing customers’ use of our platform by capturing more projects, which increases annual construction volume, selling additional existing products and services, and offering new products and services that address additional customer needs.

As a result of our focus on acquiring new customers and expansion of existing customers’ use of our platform, we have also seen an increase in the number of customers that contributed more than $100,000 of annual recurring revenue (“ARR”), which was 2,008, 1,576, and 1,111 as of December 31, 2023, 2022, and 2021, respectively, reflecting year-over-year growth rates of 27% in 2023 and 42% in 2022.

Customers that contributed more than $100,000 of ARR represented 60%, 57%, and 52% of total ARR in each of the annual periods ending December 31, 2023, 2022, and 2021, respectively.

The number of customers that contributed more than $1,000,000 of ARR was 62, 47, and 30 as of December 31, 2023, 2022, and 2021, respectively, reflecting year-over-year growth rates of 32% in 2023 and 57% in 2022.

Customers that contributed more than $1,000,000 of ARR represented 14%, 12%, and 10% of total ARR in each of the annual periods ending December 31, 2023, 2022, and 2021, respectively.

All aforementioned customer counts exclude Express Lien, Inc.

(d/b/a Levelset) (“Levelset”) and Esticom, Inc.

(“Esticom”) customers that do not have standard Procore annual contracts.

For a description of how we calculate ARR, see the sub-heading titled “Acquiring New Customers and Retaining and Expanding Existing Customers’ Use of Our Platform,” under the heading “Certain Factors Affecting Our Performance” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Our success in building our customer base, expanding usage for existing customers, and helping digitize the industry has allowed us to achieve significant growth.

15 unchanged sentences

Architects and engineers work together to develop building plans and designs, collaborating directly with owners and general contractors.

Typically, architects are responsible for designing the aesthetic look and feel of a structure, while engineers focus on safety and functionality, materials, and structural design.

Typically, architects are

responsible for designing the aesthetic look and feel of a structure, while engineers focus on safety and functionality, materials, and structural design.

The construction industry has four defining characteristics:

6 unchanged sentences

• Stakeholder dynamics are complex.

Construction projects require collaboration across a wide range of stakeholders who often have a different set of interests and lack familiarity and trust with one another, yet all are interdependent and ultimately share project risks.

Similarly, all project participants are adversely impacted when a project is delayed, runs over budget, or does not meet quality or safety requirements.

Construction projects require collaboration across a wide range of stakeholders who often have a different set of interests and lack familiarity and trust with one another, yet are all interdependent and ultimately share project risks.

All project participants are adversely impacted when a project is delayed, runs over budget, or does not meet quality or safety requirements.

For example, a concrete contractor may not be able to pour concrete on a project until the mechanical, electrical, and plumbing (“MEP”) contractors complete their scope of work.

If the MEP contractors fail to complete their tasks as scheduled and that delay is not properly communicated to all affected stakeholders, then not only could the project fall behind schedule but the concrete may still arrive at the jobsite as originally scheduled, become unusable, and need to be disposed of,

driving up costs and impacting profit margins.

In order to avoid related financial losses, stakeholders are often quick to redirect responsibility to other participants on a project and seek to resolve disputes in court.

12 unchanged sentences

Several of our initiatives, including Jobsite, our industry-focused blog site, Procore Community, our online user community forum, and Groundbreak, our annual construction industry conference, are designed to grow community engagement across our platform.

We also offer additional resources to the construction community, including certified continuing education courses, training programs, online content libraries, and free software to universities, schools, trade unions, and non-profits through our in-house social impact team, Procore.org.

We also offer additional resources to the construction community, including certified continuing education courses, training programs, online content libraries, and free software to universities, schools, trade unions, and nonprofits through our in-house social impact team, Procore.org.

• We put our customers first.

We make our products intuitive and easy to use, whether from a computer, smartphone, or tablet, in the field or in the back office, so that everyone can adopt and benefit from the power of our products.

A core part of our strategy is our user-centric development culture.

A core part of our strategy is our user-centric development

We engage with the construction community to understand its needs and work with our customers to develop, iterate, and improve our products and technology.

3 unchanged sentences

Our platform offers our customers and collaborators online and offline access to critical project information and capabilities that address a range of evolving needs throughout a project’s lifecycle, including bidding, scheduling, building information modeling (“BIM”), labor tracking, financial management, and more.

Our platform streamlines communication and facilitates compliance with safety and other regulatory standards, which helps increase productivity and efficiency, reduces rework and costly delays, improves safety and compliance, and enhances collaboration and accountability among key stakeholders.

Our platform streamlines communication and facilitates compliance with safety and other regulatory standards, which helps increase productivity and efficiency, reduce rework and costly delays, improve safety and compliance, and enhance collaboration and accountability among key stakeholders.

Product Categories

13 unchanged sentences

Construction teams responsible for performing work on the jobsite are often unable to efficiently track labor productivity, which leads to schedule delays, inefficient use of time, margin loss, and rework.

Our Workforce Management product helps customers address these problems by allowing contractors to better schedule, track and forecast labor productivity, improve time management, communicate more efficiently with their workforces, and better manage profitability on construction projects.

Our Workforce Management products help customers address these problems by allowing contractors to better schedule, track, and forecast labor productivity, improve time management, communicate more efficiently with their workforces, and better manage profitability on construction projects.

By using our products, customers are also creating detailed productivity records that can be referenced during the bidding process.

4 unchanged sentences

Our Financial Management products provide customers with visibility into the financial health of their individual construction projects and portfolios, and facilitate untethered access to financial data, linking the field and the office in real-time.

Our products improve cost management, invoice collection and review, lien rights management, and budget forecasting and tracking.

Our products improve cost management, invoice collection and review, payments, lien rights management, and budget

forecasting and tracking.

Our platform also supports integrations with a majority of the industry’s preferred accounting systems.

• Construction Intelligence.

Construction Intelligence is a set of holistic solutions that offers advanced analytics and business intelligence capabilities, allowing customers to capture, manage, and learn from data for streamlined and robust project and portfolio reporting, analytics, and artificial intelligence (“AI”)-guided workflows, as well as to monitor projects and drive more informed decision-making for their business needs.

Construction Intelligence is a set of holistic products that offers advanced analytics and business intelligence capabilities, allowing customers to capture, manage, and learn from data for streamlined and robust project and portfolio reporting, analytics, and artificial intelligence (“AI”)-guided workflows, as well as to monitor projects and drive more informed decision-making for their business needs.

With Construction Intelligence, information and data collected during the course of construction using our products becomes a catalyst for creating a culture of data-driven analysis and decision-making at each level of a customer’s organization.

13 unchanged sentences

We have also developed highly configurable forms, data fields, and workflows, enabling our customers to centralize their data on our platform.

Our platform services are designed around four

defining attributes that increase the breadth and depth of our offering, improve usability, and enable a unified experience .

Our platform services are designed around four defining attributes that increase the breadth and depth of our offering, improve usability, and enable a unified experience.

These include:

1 unchanged sentence

Our platform is designed to be flexible and adaptable, providing native mobile and desktop user interfaces (“UI”) to both our internal and third-party developers.

This means developers can accelerate design and development efforts by accessing Procore’s core UI components and design guidelines, helping to ensure a consistent user experience.

This means developers can accelerate design and development efforts by accessing our core UI components and design guidelines, helping to ensure a consistent user experience.

We also offer third-party developers the ability to create embedded applications, which we call Embedded Apps, a feature that allows developers to insert their apps directly into our UI.

6 unchanged sentences

These permissions define who has access to certain project and company-level information.

By default, we provide customers with several role-based permission templates, and these permissions are configurable down to the tool access level by user.

By default, we provide customers with

several role-based permission templates, and these permissions are configurable down to the tool access level by user.

Our platform features developer-friendly open APIs and tools that are designed to empower our customers and third-party developers to build their own integrations or customized applications, thereby expanding the functionality of our products.

3 unchanged sentences

Additionally, our platform allows us to collect aggregated, anonymized data that we can use to develop new products, services, and features, as well as better support our customers as they navigate challenging industry and market conditions.

We are also developing risk modeling to price risk in offerings such as our materials financing program and utilize predictive data to tailor those offerings to fit our customers’ needs.

We also expect to leverage data to build AI and machine learning functionality into the Procore platform in order to provide customers with ways to automate repetitive tasks, uncover hidden information, and glean actionable insights to drive better outcomes on projects, in addition to other next-generation features.

We are also developing risk modeling to price risk in offerings such as our insurance brokerage and utilize predictive data to tailor those offerings to fit our customers’ needs.

We have also begun leveraging data to build AI and machine learning functionality into our platform in order to provide customers with ways to automate repetitive tasks, uncover hidden information, and glean actionable insights to drive better outcomes on projects, in addition to other next-generation features.

For example, we are developing an AI-powered assistant called Procore Copilot with the intent to provide contextual help and predictive experience layers across the platform.

Our platform typically serves as a system of record for our customers’ projects, meaning that our customers are incentivized to continue to subscribe to our products even after the end of a construction project in order to leverage the benefits of Procore.

11 unchanged sentences

It is critical for owners’ bottom lines that they remain informed of what work has been completed, when it was completed, and what specifically was built or installed.

Not only is this information crucial for

ongoing projects, but it is also necessary for long-term asset management, as the underlying data allows for more efficient, effective, and predictive maintenance.

Not only is this information crucial for ongoing projects, but it is also necessary for long-term asset management, as the underlying data allows for more efficient, effective, and predictive maintenance.

General contractors

2 unchanged sentences

General contractors are also compelled to perform duplicate data entry in disparate systems and are accustomed to dealing with invoicing errors, information silos, and disconnected point solutions.

For example, general contractors must often collect and consolidate dozens of invoices from their specialty contractors each month before invoicing the owner.

For example, general

contractors must often collect and consolidate dozens of invoices from their specialty contractors each month before invoicing the owner.

This process can require days or even weeks of effort, depending upon a project’s complexity and the number of specialty contractors.

8 unchanged sentences

Our products feature intuitive, easy-to-use tools that allow specialty contractors to leverage accurate, real-time information, reduce unnecessary data entry, visualize productivity trends, document completed work, and get paid the correct amounts faster.

We are also developing other programs and services to address related challenges faced by specialty contractors.

For example, our materials financing program aims to help specialty contractors manage cash flow concerns by facilitating the purchase of construction materials from fulfillment partners on our customers’ behalf, allowing those customers to finance their materials purchases from us on deferred payment terms that better match construction payment timelines.

Our Business Model

2 unchanged sentences

As we grow, we believe that the value of our business will increase across three key dimensions:

Our business model is designed to encourage rapid, widespread adoption by allowing for unlimited users, meaning we do not charge a per-seat or per-user fee.

Customers can invite all project participants to engage with our platform as part of a project team.

This includes customers’ employees and collaborators, who are other project participants who engage with our platform but do not pay us for such use.

Thereafter, collaborators have an incentive to become customers, as collaborators do not control what information they get access to, may not be able to access project information after a project is complete, and cannot run their complete portfolio of projects on our platform.

Our business model is designed to encourage rapid, widespread adoption by allowing for unlimited users, meaning that we do not charge a per-seat or per-user fee.

Customers can invite all project participants to engage with our platform as part of a project team, including customers’ employees and collaborators, who are other project participants who engage with our platform but do not pay us for such use.

Thereafter, collaborators have an incentive to become customers so that they can manage their complete portfolio of projects on our platform, use our products to improve their business processes, and maintain ownership of project data.

We believe our expertise in construction and close relationship with our customers and collaborators enable us to deliver easy-to-use and feature-rich products, specifically tailored to solve the problems of the industry’s key stakeholders and help them manage their businesses more effectively.

2 unchanged sentences

Our platform captures data encompassing bidding, safety, cost, quality, scheduling, materials, supplier information, and other types of data.

We believe our unique access to data through our platform will allow our team to assess construction risk faster and

more accurately than traditional methods, and our goal is to use such data to scale and automate our product offerings, including our materials financing program .

We believe our unique access to data through our platform will allow our team to assess construction risk faster and more accurately than traditional methods, and our goal is to use such data to scale and automate our product offerings.

Our Growth Strategy

2 unchanged sentences

• Maintain and advance our technology leadership.

We believe that the investments we have made in research and development to build our technology have been core differentiators of our products and platform.

We believe that the investments we have made in research and development to build our technology have been core differentiators of our products

and platform.

We plan to continue to invest in technology innovation and product development, and we believe that our customers will benefit from new features and products on our centralized platform.

4 unchanged sentences

These users are incentivized to become customers in order to gain visibility and control across their projects with actionable insights from a single system.

In the future, we have the potential to monetize additional adjacent stakeholders, including a broad set of industry participants who are potential customers of our existing products and services and those whom we plan to address with targeted new products and services, such as our materials financing program, over time.

Such new products and services may allow us to attract new customers as well as expand existing customer relationships.

3 unchanged sentences

We believe there is a global need for construction management software and that the global market is currently underpenetrated, representing a significant opportunity.

We plan to open offices and hire sales and customer experience teams and expand our presence in the countries where we already operate, as applicable.

We plan to hire sales and customer experience teams and expand our presence in certain countries where we already operate.

• Extend our industry connectivity and our position as a trusted brand.

5 unchanged sentences

Our App Marketplace provides us with visibility into our customers’ interactions with many third-party integrations.

For example, in 2019, we acquired Honest Buildings, Inc.

(“Honest Buildings”), an existing App Marketplace partner and a provider of financial and project management software for owners, allowing us to further extend our products and platform to this key stakeholder group.

In 2020, we acquired Esticom, another App Marketplace partner and provider of a leading estimating solution.

In 2021, we acquired Levelset, a lien rights management solution, and LaborChart, a labor management solution, both of which were also existing App Marketplace partners.

For example, in 2021, we acquired Levelset, a lien rights management solution, and LaborChart, Inc.

(“LaborChart”), a labor management solution, both of which were existing App Marketplace partners.

We also acquired Unearth Technologies, Inc.

(“Unearth”), an existing App Marketplace partner, in 2023.

Our existing integrations with App Marketplace partners like these streamline the integration of their solutions into our platform post-acquisition and allows us to quickly deliver a seamless customer experience across financial and project management workstreams.

2 unchanged sentences

Preconstruction

Prequalification.

Procore Prequalification streamlines the process of selecting specialty contractors and vendors for construction projects, connecting all stakeholders involved in the process in one place.

Customers can easily send out requests for documentation to potential partners, which are then collected, standardized, and aggregated within the Prequalification product, making sure all project stakeholders have access to the right information at the right

From there, customers can evaluate which partners have the capability, capacity, and resources to be hired for their project.

Customers can also access and store financial data, increasing project team visibility without compromising confidentiality .

Procore’s estimating solution offers quantity takeoff and estimating capabilities that streamline the takeoff, estimating, and bidding process, allowing customers to bid and win more projects in less time.

• Estimating.

Procore Estimating offers quantity takeoff and estimating capabilities that streamline the takeoff, estimating, and bidding process, allowing customers to bid and win more projects in less time.

Customers can quickly perform a digital quantity takeoff to determine materials, labor, and equipment required to complete a construction project based on relevant documents such as plans and specifications, add the associated costs, and markup and create a customer-facing proposal that can be approved and tracked all within a single application, reducing overhead and improving profitability.

2 unchanged sentences

Bid Management also provides vendors with a single location to access bid package details, files, and communications to simplify the bid submission process.

• Prequalification .

Procore Prequalification streamlines the process of selecting specialty contractors and vendors for construction projects.

Customers can send out requests for documentation to potential partners, which are then collected, standardized, and aggregated within the Prequalification product.

From there, customers can evaluate which partners have the capability, capacity, and resources to be hired for their project.

Project Execution

7 unchanged sentences

Additionally, the product helps users identify, understand, and proactively resolve the causes of issues and risky behaviors before they result in an injury or accident.

Design Coordination.

• Design Coordination and BIM.

Procore Design Coordination helps users identify and resolve design and constructability issues prior to construction, thereby minimizing the cost of RFIs, change orders, and rework.

Our product allows users to coordinate documents and 3-D models, bringing stakeholders together in a collaborative tool to validate a project design and achieve predictable results in the field.

Building Information Model.

Procore BIM enables all users in the field to view and collaborate on 3-D models, which allow project teams to more efficiently plan and construct their projects.

3 unchanged sentences

• Field Productivity.

Procore Field Productivity enables contractors to manage their labor with real-time time data for payroll, manage out-of-scope work, as well as communication, certification, forecasting, and productivity tracking.

Procore Field Productivity enables contractors to manage their labor with real-time data for payroll, document out-of-scope work, as well as communicate, certify, forecast, and track productivity.

This data deeply integrates into Procore Project Financials, powering critical labor cost analysis and change management workflows that maximize job profitability.

11 unchanged sentences

Procore Invoice Management expedites the invoice creation, collection, review, and approval process across stakeholders.

Our products allow customers to automate the creation of invoices while helping to

ensure accuracy and reduce delays in payment.

Our products allow customers to automate the creation of invoices while helping to ensure accuracy and reduce delays in payment.

By streamlining the payment process, Invoice Management helps to reduce schedule delays arising from disruptions in cash flow.

Portfolio Financials.

Procore Portfolio Financials is purpose-built for owners, enabling these stakeholders to track and approve expenditures across their portfolio of construction projects.

Users can compare bids across different general contractors and manage budgets, change orders, and invoices all in one place.

• Accounting Integrations.

Procore Accounting Integrations integrates with our customers’ accounting systems to minimize manual data entry and reduce errors created through double entry.

Accounting integrations sync project information between the field and office so informed decisions can be made using up-to-date project and cost data.

integrations sync project information between the field and office so that users can make informed decisions using up-to-date project and cost data.

• Lien Rights Management.

1 unchanged sentence

Users can exchange and collaborate around payment documents such as lien waivers, payment applications, and preliminary notices, enabling contractors, suppliers, and other industry stakeholders to have better visibility, more streamlined documentation, and faster payments.

• Procore Pay .

Procore Pay is a payment solution that handles all aspects of the payment process between general contractors and subcontractors.

It combines functionality from Invoice Management and Lien Rights Management with money movement to streamline the payment process.

Procore Pay provides users with a single system to engage in payment-related activities, provides visibility and transparency for tracking payment requirements, and automates the exchange of lien waivers.

Construction Intelligence

3 unchanged sentences

Sales and Marketing

We primarily sell subscriptions to access our products through our direct sales team, which is specialized by stakeholder region, size, and type, and is serviced regionally by offices in the U.S., Canada, Australia, England, Mexico, Singapore, the United Arab Emirates (“UAE”), France, and Ireland, and by our focused sales and marketing efforts in Germany, where we do not yet maintain an office location.

We primarily sell subscriptions to access our products through our direct sales team, which is specialized by stakeholder region, size, and type, and is serviced regionally by offices in the U.S., Canada, Australia, England, the United Arab Emirates (“UAE”), France, and Ireland, and by our focused sales and marketing efforts in Germany, where we do not maintain an office location.

As a result of our international efforts, we support multiple languages and currencies.

21 unchanged sentences

• accounting software vendors , including providers that offer accounting software and supplement their solutions with project management tools and other offerings, which are often bundled with their accounting solutions as lower-value add-ons.

point solution vendors in various categories, including analytics, bidding, BIM, compliance, scheduling, and materials financing, among others.

• point solution vendors in various categories, including analytics, bidding, BIM, compliance, and scheduling, among others.

Many of the point solutions these vendors provide integrate with our platform and are available in our App Marketplace.

2 unchanged sentences

Our people are our most vital asset in building and growing our business.

We have worked hard to create and maintain a culture based on three core values:

We are proud to have been named among Glassdoor’s Best Places to Work in multiple years.

Based on employee reviews, this award is a significant vote of confidence by our employees and reflects their belief in our mission and vision, the strength of our company culture, and our commitment to putting people first.

We are also proud to have been able to maintain our culture, which is based on three core values:

We define openness as “a willingness to engage and express, as well as to consider, new information and ideas.” We ask our employees to be honest without ego, meaning that employees can share critical opinions without fear of retribution and admit when they don’t know something.

7 unchanged sentences

We also believe that having an open and inclusive work culture is integral to our ability to attract and retain exceptionally talented and motivated employees.

We continue to evolve our diversity, equity, inclusion, and belonging (“DEIB”) initiatives to drive engagement with our employees, our customers, and other industry stakeholders.

Our DEIB initiatives are centered around five pillars :

talent acquisition, training and development, equity analysis, employee resource groups, and partnerships and outreach.

Our goal is to evolve a culture where diversity, equity, inclusion, and belonging (“DEIB”) are embedded in our business.

We strive to build a globally inclusive workplace to support growth and innovation with our entire workforce while advancing the construction industry through advocacy, education, and technology.

Our DEIB initiatives are centered around three strategic pillars:

inclusive workplace (building an inclusive culture that promotes ideas from all employees), global workforce (cultivating a global workforce at all levels that reflects our world), and community (engaging and co-creating an inclusive path forward for our industry).

We invest in our employees and provide a broad range of benefits and perks to help them grow and thrive.

Our compensation and benefits programs are competitively designed to recruit, reward, and retain talented individuals to drive our business forward.

Compensation may include base salary and annual bonus, commission, and equity awards.

Benefits include medical and dental coverage, mental health, time-off benefits (including an annual wellness week), life and disability insurance, retirement plans, and an employee stock purchase plan;

the benefits in each country vary based on local regulations and norms.

We evaluate our compensation and benefits programs on a regular basis, adjusting as needed.

As of December 31, 2023, we had 3,694 full-time employees, with 3,119 based in the U.S.

and 575 based in our international locations.

Our Commitment to the Construction Industry

Our Commitment to the Construction Industry and Our Communities

We have taken steps to promote a more diverse and inclusive construction industry.

1 unchanged sentence

As part of this effort, we host webinars, curate a virtual community group, and attend events across the country to connect advocates for the increased presence of women in construction.

Through our in-house social impact team, Procore.org, we support the advancement of the construction industry by providing an array of resources, including certified continuing education courses, training programs, online content libraries, and in-kind donations of software and training to universities, K-12 school programs, training centers, trade associations, disadvantaged business enterprises, and non-profits.

Giving back to our communities is an essential element of our DNA, and we support employee volunteering by providing each employee with Volunteer Time Off annually.

We also have a volunteer platform that gives employees easy access to a wide range of volunteer and giving opportunities.

Our Intellectual Property

2 unchanged sentences

and 73 pending patent applications in the U.S.

Additionally, we had 16 pending patent applications in foreign countries, as well as nine pending international patent applications that preserve our right to file additional foreign patent applications in the future, as of such date.

Additionally, we had 18 pending patent applications in foreign countries, as well as 10 pending international patent applications that preserve our right to file additional foreign patent applications in the future, as of such date.

Our issued patents in the U.S.

6 unchanged sentences

Despite our efforts to protect our intellectual property rights, they may not be respected in the future or may be invalidated, circumvented, or challenged.

For additional information, see the sections titled “Risk Factors—Risks Related to Our Intellectual Property—Our failure to protect our intellectual property rights and proprietary information could diminish our brand and other intangible assets and otherwise materially adversely affect our business, financial condition, results of operations, and prospects.”

For additional information, see the section titled “Risk Factors—Risks Related to Our Intellectual Property—Our failure to protect our intellectual property rights and proprietary information could diminish our brand and other intangible assets and otherwise materially adversely affect our business, financial condition, results of operations, and prospects.”

Corporate Information

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business